Mexico Abolishes Import Taxes On Rice

The Mexican government has decided to eliminate all import tariffs on wheat, corn and rice as part of a plan to counter the rising food prices that have provoked recent street protests.

Mexican President Felipe Calderon, has blamed the high food costs on global factors, including rising energy prices, soaring food demand in China and India and the use of corn for ethanol production.

Mexico's consumer prices rose 4.55% in the 12 months ending April 30, led by the cost of tomatoes, chicken, bread, avocados, plantains and cooking oil. It was the biggest inflation increase since 2005. Last year, tortilla prices doubled, in part because of the U.S. ethanol boom, provoking street protests.